LEE IACOCCAAn Autobiography Presented By: Gaurang
The Author - Timeline • 1924 - Born Lido Anthony Iacocca,in Allentown, Pennsylvania • 1946 - Landed first job at Ford MotorCompany as an engineering trainee • 1964 - Ford rolled out the Mustang pony car, Icocca promoted to head of the company's Ford division • 1966 - One-millionth Mustang built within two years • 1970 - Became president of Ford • 1973 - Ford Mustang II was introduced • 1978 - Fired by Henry Ford II • 1979 - Became Chrysler's CEO • 1980 - President Carter signed the Chrysler Corp. Loan Guarantee Act, providing $1.5 billion in loan guarantees, which were used to save and rebuild Chrysler • 1983 - Chrysler paid back government loan in full - and a full seven years early
The Book • Co-authored by William Novak • Published in 1984 • Most of the book is taken up with reminiscences of Iacocca's career in the car industry, first with the Ford Motor Company, then the Chrysler Corporation. • Was the best-selling non-fiction hardcover book of 1984 and 1985. "Good leaders know how to follow their people."
The Ford Story • Joined Ford Motor in 1946 • After a brief stint on engineering, moved to sales and marketing where his career flourished • His maverick, street-smart, "thinking on your feet" approach induced breakthrough programs like "56 for 56” which won national acclaim • Another legendary project was 1964 Mustang • His use of market research, his willingness to listen and his readiness to take risks introducing new products made him a strong business force Management is nothing more than motivating other people.
The Rising • Was responsible for the Lincoln Continental Mark III, the Ford Fiesta and the revival of the Mercury brand • Promoted other ideas which did not reach the marketplace as Ford products • Was made President of Ford on December 10, 1970. "And so, after ten years of preparation, I became an overnight success"
The Break-up • By the end of 1975 Lee and Henry Ford II began to have a personality conflict • Ford Posts a $2 billion profit in 1978 • Iacocca is fired from Ford at the ripe age of 54 • He was just months away from retirement!!! • 3 months later Iacocca’s wife has an heart attack Henry Ford II: "Sometimes you just don't like somebody"
The Second Innings – Chrysler Corp • Nov 2, 1978 • Chrysler had $160 million losses • No coordination • Liquidity crunch • Low morale • Industrial spying • Losing consumer loyalty • Poor quality • Sales Bank • Iacocca Joins Chrysler • Lee sells Chrysler Europe to Peugeot, Brings Associates from ford, starts ‘Mini-Max’ Project, lays of workers and rebuilds company from the ground up and………………………. Detroit Press : 'Chrysler Losses Are Worst Ever', 'Lee Iacocca joins Chrysler'
At Chrysler • ………. the country witnessed one of the greatest economic dramas in history as Chrysler struggled to get back on its feet. • Introduced K-cars • Omni and Horizon became instant hits, selling over 300,000 units each in their debut year • Ironically, concept of K-cars was proposed by Lee when he was in Ford but HF2 did not want anything to do with small cars!!! • Now Chrysler went ahead of Ford with these cars
The Loan • In 1979 • Chrysler on verge of Bankrupcy • Failed talks on Loan Procurement • Failed talks on sellout to Volkswagon • Lee approached US Congress for Loan Guarantee • Country fumes – should chrysler be saved? • $1.5 billion loan is granted • In 1981 • Loss of $478.5 million • Proposed merger between Ford and Chrysler • Bankrupcy situation again • Additional $600 million concession
The Loan (Contd.) • 1983 • Lost his wife • Chrysler Pays back loan to Govt. full 7 years early!!! • The turnaround is complete • Aquires AMC – Brings Jeep division to Chrysler • Retires from Chrysler in 1993
Thank You “Motivation is everything. You can do the work of two people, but you can't be two people. Instead, you have to inspire the next guy down the line and get him to inspire his people.” “Apply yourself. Get all the education you can, but then, by God, do something. Don't just stand there, make it happen.” “I have found that being honest is the best technique I can use. Right up front, tell people what you're trying to accomplish and what you're willing to sacrifice to accomplish it.” “If you want to make good use of your time, you've got to know what's most important and then give it all you've got.” “In the end, all business operations can be reduced to three words: people, product and profits. Unless you've got a good team, you can't do much with the other two.”